Conflict of interest - a situation where the employee's internal beliefs contradict the responsibilities assigned to him. In such cases, the actions of the subject can negatively affect the implementation of the tasks assigned to him.
The legislation establishes the obligation of the head of the organization to prevent a conflict of interest. For this, special local documents are developed. One of them is the Conflict of Interest Regulation. Consider its features.
General information
The regulation on the prevention of conflicts of interest is developed taking into account the specifics of a particular industry in which the organization operates. Accordingly, the regulatory framework is also selected. For example, the Regulation on the conflict of interests in the healthcare institution is being developed on the basis of the provisions of the Federal Law No. 273, 323 and the Methodological Recommendations of the Ministry of Health and Social Development on combating corruption.
Goals
Timely detection of a conflict of interest in the work of the organization’s employees is recognized as one of the main elements in preventing corruption violations. The development of a local document allows not only to timely identify it, but also to prevent the consequences of unlawful actions of employees.
The regulation on the settlement of conflicts of interest is an internal act of the institution and applies to absolutely all of its employees.
Principles
The key objective of the organization’s activity is to limit the influence of personal interest of employees on the labor functions that they perform in accordance with the contract and job description, as well as on the decisions that they make.
The statement of conflict of interest in the institution establishes the following principles:
- Obligation to disclose information about potential or real personal interest of employees.
- Individual review, risk analysis by the management of the organization.
- Confidentiality of activities for the prevention of conflict of interests and its elimination.
- Maintaining a balance between the needs of the employee and the institution.
- Protection of the employee from prosecution related to informing him of a personal interest, if it was disclosed in a timely and voluntary manner.
Managerial decision making
The Regulation on the conflict of interests of the organization and the employee reflects the most common situations requiring management intervention.
These include not only cases where the need to satisfy personal needs is contrary to the duties assigned to the employee. A conflict of interest also arises when activities that are not related to the fulfillment of the tasks set by the manager take the employee’s working time.
Employees of the organization, for example, can participate in decisions, the implementation of which can bring benefits (property or intangible) to entities that are his friends, relatives or other close people. The most common such cases in the work of business entities (LLC, OJSC). A conflict of interest clause should reinforce management’s actions when such a situation arises. In particular, a local document may provide for the removal of employees with a personal interest from making decisions that are beneficial to them.
Staff recruitment
Another common situation is the participation of an employee in the activities of the personnel service. In this case, the employee may, out of personal interest, influence the decision on the issue of hiring one of his relatives, friends or other close persons. In such a situation, according to the Regulation on Conflict of Interest, an employee may be suspended from participation in the activities of the personnel department, transferred to another position. In addition, the list of his duties may be changed.
Third party engagement
The conflict of interest clause applies when an employee receives services or benefits from an entity that is in partnership with the institution in which he works. In such situations, the employee may be advised not to receive benefits. The head of the organization, however, may remove the employee from participation in activities related to cooperation with the counterparty, or change his job responsibilities.
Interaction with other employees of the organization
A conflict of interest arises when an employee performing control functions (for example, a shop manager) receives expensive gifts from a subordinate or another employee in order to weaken supervision. In such situations, the employee must return the item received. Otherwise, the manager may transfer the employee (or subordinate) to another position or change the list of his duties.
Profit Disclosure
The Regulation on Conflict of Interest must clearly state the restrictions for employees of the organization. Local documents establish the rules of corporate behavior, in accordance with which employees are not allowed to divulge information that became known to them in the process of fulfilling their duties.
If an employee used the information obtained in the course of labor for his personal (selfish) purposes, liability measures established by law may be applied to him. Among them, in particular, criminal punishment.
Preventive actions
In the Conflict of Interest Regulation, it is necessary to fully describe the measures taken to prevent undesirable situations. Preventive measures include:
- Notification by the employee of the likelihood of a personal interest in hiring, transferring to another position and other personnel changes.
- Familiarization with the Regulation, the Code of Ethics, the Rules of Corporate Conduct, the anti-corruption policy of the organization of each employee.
- Attraction of guilty persons to disciplinary and other responsibility for educational purposes.
The organization must ensure the confidentiality of corporate data.
Personnel Responsibilities
To prevent a conflict, employees of the organization should:
- Refrain from making decisions, taking actions that may entail negative consequences for the institution (enterprise).
- Follow the rules, follow the procedures established in the Regulation, the Code of Ethics and Corporate Conduct, anti-corruption policy.
- Immediately notify responsible persons of the occurrence of conditions in which a conflict of interest may arise.
- Inform the head of the organization about circumstances that hinder the independent and conscientious performance of labor duties.
- Follow the procedure for protecting information.
- Be guided by the interests and needs of the organization when making managerial and other decisions, performing tasks set by the director of the enterprise / institution.
- Disclose a potential or real personal interest.
- To assist in resolving an undesirable situation and preventing negative consequences.
Disclosure of information about personal interest is carried out upon hiring, appointment to a new post, etc. It is made in writing. Initial disclosure of information orally is permitted. Subsequently, however, the information should be documented.